Application of the Euler Sequence in Continuous Compounding

In this paper, the Euler number e, the Euler sequence and its application in real life situations particularly in business world ( financial investment ) are discussed. A basic theorem concerning convergence of the Euler sequence in which some lemmas were considered in order to achieve the proof of the theorem is presented. The paper showed the application of the Euler sequence in continuous compounding and the development of a new formula (INTEREST FORMULA) in continuous compounding. To achieve this, the convergence of the Euler sequence to the Euler number e was established and finally, its application in continuous compounding and some striking examples are shown.